Polish mBank pays paltry concession for five year

By Steven Gilmore
27 Mar 2014

mBank, Commerzbank's Polish unit, issued a €500m five year bond this week, in a deal that successfully struck a balance between emerging market and investment grade specialists. The issuer trades too tight for some emerging market accounts and is not a natural choice for investment grade buyers but drew enough demand from both groups to price an oversubscribed bond with only a minimal new issue premium.

The bond attracted EM investors looking for safety, and drew a strong response from investment grade accounts in search of spread, said bankers involved. 

Bookrunners Commerzbank, Erste and UBS priced the deal at 145bp over mid-swaps on Monday. They approached buyers with initial price thoughts in the 155bp area ...

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